MP Dispute about Means of SOFAR

Deputies of Milli Majlis (MPs) are unhappy with the results of investments by the State Oil Fund (SOFAR) at 2% of annual interest in the world market. Thus, during the state budget discussion MP Faraj Guliyev called for the withdrawal of at least 50% of the foreign assets of this entity. "The returned funds should be directed at improving the living conditions of young people, granting them loans at an annual rate of 2-3%. These funds could also stimulate the return to the country of migrant workers working in the markets of Russia," he believes.

According to MP Fazail Agamaly, today about 5 million citizens are "hostages" of private banks, which should make CBA think it over. "If the Central Bank cannot take the appropriate measures in order to achieve lower interest rates on loans, then I suggest to present the bank with additional powers to lawfully amend the Administrative Code to solve this problem and save the citizens of this disaster," he said. However, he forgot to mention that the high interest rates on loans are not a whim of the private banks, but a part of the deliberate policy to "pull" funds from the population.

On the "destructive" proposals of MPs the parliament Vice-speaker Valeh Aleskerov made an appeal to "stop the speculative talk about the impact of the fall in world prices on the country's economy, as well as the revocation of SOFAR funds from foreign markets." According to him, the fall in oil prices is natural - so, in the middle of 2008, the price of oil in the world market was $ 139 per barrel, and in 2009 it fell to $ 39. "Our economy did not feel the sharp fluctuations in prices due to the stability, especially as prices fall as a result of "games" in the financial markets, and the growth of market demand. Only in 2014 the United States as the world's main oil producer, increased production by 1 million barrels per day, and Libya, living in an unstable political situation, was forced to increase oil production by 800,000 barrels, which affects the prices. But it will pass," the Vice-speaker encouraged the MPs.

Turan reported earlier on the basis of SOFAR reports that this body spent more than 50% of the funds accumulated since 1999 through transfers to the state budget and other deductions. Total revenues from the PSA oil contracts are also still below the primary forecasts. --17D-